If You Had Bought KLX Energy Services Holdings' (NASDAQ:KLXE) Shares A Year Ago You Would Be Down 48%

It is a pleasure to report that the KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) is up 162% in the last quarter. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact, the price has declined 48% in a year, falling short of the returns you could get by investing in an index fund.

View our latest analysis for KLX Energy Services Holdings

KLX Energy Services Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In just one year KLX Energy Services Holdings saw its revenue fall by 51%. If you think that's a particularly bad result, you're statistically on the money No surprise, then, that the share price fell 48% over the year. It's always work digging deeper, but we'd probably need to see a strong balance sheet and bottom line improvements to get interested in this one.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think KLX Energy Services Holdings will earn in the future (free profit forecasts).

A Different Perspective

While KLX Energy Services Holdings shareholders are down 48% for the year, the market itself is up 25%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 162% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that KLX Energy Services Holdings is showing 5 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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